War on 'work-shy' backfires

More people are claiming welfare this year than when Labour came to power in 1997, despite Gordon Brown's repeated promises to lead a "crackdown" on the "work-shy", a study released last night claims.

Figures produced on the eve of the Chancellor's Pre-Budget Report (PBR) to the Commons suggest his repeated pledges to push through schemes designed to move those on benefit into paid employment have had little effect. The report, released by the Tories as part of their efforts to knock holes in Mr Brown's economic record, details the impact of successive PBR announcements on the benefits system.

David Willetts, the shadow work and pensions secretary, said the schemes introduced by Mr Brown over the years had not had a significant impact, and in some cases had made it more difficult for people to find work. Figures released by the Government last week showed that 3,960,000 people are claiming Income Support now compared with 3,958,000 in May 1997. Mr Willetts said: "For all his huffing and puffing, Gordon Brown hasn't reduced the number of people on Income Support at all."

The Chancellor faces a difficult week as he seeks to convince the City and the voters that his spending plans are not being blown off course by an economic slowdown.

He will address the Confederation of British Industry annual conference in Manchester today. In his report to Parliament on Wednesday he is expected to have to confirm that Government borrowing is rising steeply.